Challenges and Strategies of Chinese New Energy Vehicles in the Latin American Market: A Case Study of BYD

Yaojie Lyu; Zhengyang Chen

doi:10.32629/memf.v7i3.5385

Journal: Modern Economics & Management Forum DOI: 10.32629/memf.v7i3.5385

Yaojie Lyu, Zhengyang Chen

Zhejiang International Studies University, Hangzhou, Zhejiang, China

Abstract

Decarbonisation around the world has led to the global shift in China's new-energy-vehicle industry to go international. This paper will study the development of BYD in Latin America and Mexico. Based on the case study method, it has been found that policy support and the demand for urban electrification create opportunities. It also investigates other problems, such as local production rules, cultural differences between China and Mexico, stricter environmental regulations, etc. BYD’s Answers to the problems will be introduced in detail. The main result is that to achieve long-term success in the new areas, one must know the local institutions and culture well and genuinely strive to become a member of the local ecosystem. Based on this, three recommendations are put forward: build local cooperation, develop products in line with local requirements, and keep communication open.

Keywords

new energy vehicles, Latin America, BYD, localization, Mexico

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